GBPUSD Daily Forecast: November 12

By IBT Staff Reporter On 11/11/09 AT 11:48 PM

GBPUSD Forecast:

The GBPUSD had a significant bearish momentum yesterday, bottomed at 1.6534 and closed at 1.6580. However, the bullish channel remains valid. Although this situation could be a potential threat to the bullish outlook, unless the bullish channel violated to the downside, I think it’s to early for bearish reversal scenario. The circled bearish candle on my daily chart below show that during bullish scenario, we might have significant bearish correction but as long as price move inside the bullish channel, the big picture of bullish scenario should remains intact. Price now is testing the lower line of the bullish channel which is a good area to place a long position with tight stop loss once price break below the bullish channel. Immediate support at 1.6510. Break below that area could be seen as potential bearish reversal scenario. Initial resistance at 1.6550. Break above that area should trigger further bullish momentum and keep the bullish scenario intact.